Shortly after Quality Function Deployment (QFD) was invented in Japan in the late 1960s, Robert S. Kaplan, Harvard Business School Professor, quipped, "If you can't measure it, you can't manage it." It is clear that Kaplan understood the role of QFD in disruptive and fast-paced business ecosystems. QFD is a systematic process for translating customer expectations into specific plans and processes to meet those expectations. Given the pace at which customer needs and technology are changing, Fortune 500 C-level executives should prioritize QFD to stay ahead.
Failure to adequately understand customers' voices leads to lost opportunities and competitive disadvantage—a fact underscored by a McKinsey survey, showing that companies in the top quartile for customer experience have a return on investment that is 77% above those in the bottom quartile. QFD can address this by methodically transforming customer needs into products, services, and operational parameters that align with those needs.
QFD Process and Applications
At its heart, the QFD process utilizes a "House of Quality"—a structured framework for capturing the voice of the customer, translating it into technical requirements, and prioritizing these requirements strategically. QFD encompasses four phases: Product Planning, Part Deployment, Process Planning, and Process Control—a systematic approach that echoes Kaplan's mantra of measure and manage. QFD has found broad applications across industries, from automobile manufacturing to software development and healthcare.
Insights and Best Practices for Implementing QFD
Here are some unique insights and best practices for C-level executives when implementing QFD in their strategic management:
Embed QFD in Strategic Planning: An Accenture study confirmed that businesses with tightly aligned strategic and execution processes outperformed their peers by 36% in terms of revenue and 40% in terms of profit. Integrating QFD into your Strategic Planning process can align your organization's objectives with customer-centric requirements and solutions.
Embrace Cultural Shifts: For QFD to be successful, there must be a Culture of quality and customer orientation throughout the organization. This shift in Culture necessitates a top-down approach, where C-level executives lead by example.
Involve Cross-Functional Teams: QFD requires a comprehensive perspective on customer needs, therefore, it's essential to involve multi-disciplinary teams in the QFD process for a richer understanding of customer expectations and technically feasible solutions.
Leverage Technology: In our digital age, AI, Big Data, and Analytical Tools can provide detailed insights into customer behaviors, sentiments, and desires. Successful implementation of QFD involves leveraging advanced technology to analyze intricate data and draw meaningful conclusions.
Iterate and evolve: QFD is not a one-time activity. It's an iterative process that evolves with changing market trends, customer expectations, and internal capabilities. Regular re-evaluations and adaptations of the QFD framework should be part of your Change Management plan.
Benchmarking Business Performance with QFD
Performance Management is critical for businesses, and QFD can play a pivotal role here. QFD facilitates benchmarking against competitors and market leaders, identifying gaps, and formulating strategic change initiatives. As per a Boston Consulting Group survey, companies using rigorous Performance Management approaches had an average annual Total Shareholder Return (TSR) 30% higher than their less-disciplined peers.
In summary, C-level executives aiming for heightened Operational Excellence should leverage QFD as a powerful tool in their Strategic Management toolbox. By doing so, they can ensure they create Value for their customers and stakeholders in line with Kaplan's advice: measure it to manage it.
CUSTOMER TESTIMONIALS
"I have used Flevy services for a number of years and have never, ever been disappointed. As a matter of fact, David and his team continue, time after time, to impress me with their willingness to assist and in the real sense of the word. I have concluded in fact that it is not at all just a repository of documents/resources but, in the way that David and his team manage the firm, it is like dealing with consultants always ready to assist, advise and direct you to what you really need, and they always get it right.
I am an international hospitality accomplished senior executive who has worked and lived during the past 35 years in 23 countries in 5 continents and I can humbly say that I know what customer service is, trust me.
Aside from the great and professional service that Flevy's team provide, their wide variety of material is of utmost great quality, professionally put together and most current.
Well done Flevy, keep up the great work and I look forward to continue working with you in the future and to recommend you to a variety of colleagues around the world."
– Roberto Pelliccia, Senior Executive in International Hospitality
"As a niche strategic consulting firm, Flevy and FlevyPro frameworks and documents are an on-going reference to help us structure our findings and recommendations to our clients as well as improve their clarity, strength, and visual power. For us, it is an invaluable resource to increase our impact and value."
– David Coloma, Consulting Area Manager at Cynertia Consulting
"As a young consulting firm, requests for input from clients vary and it's sometimes impossible to provide expert solutions across a broad spectrum of requirements. That was before I discovered Flevy.com.
Through subscription to this invaluable site of a plethora of topics that are key and crucial to consulting, I have been able to exceed expectations and deliver quality advice and solutions to my clients. The quality and expertise of the authors are exemplary and gives me great confidence to use as part of my service offerings.
I highly recommend this company for any consultant wanting to apply international best practice standards in their service offerings. "
– Nishi Singh, Strategist and MD at NSP Consultants
"FlevyPro has been a brilliant resource for me, as an independent growth consultant, to access a vast knowledge bank of presentations to support my work with clients. In terms of RoI, the value I received from the very first presentation I downloaded paid for my subscription many times over! The quality of the decks available allows me to punch way above my weight – it's like having the resources of a Big 4 consultancy at your fingertips at a microscopic fraction of the overhead."
– Roderick Cameron, Founding Partner at SGFE Ltd
"[Flevy] produces some great work that has been/continues to be of immense help not only to myself, but as I seek to provide professional services to my clients, it give me a large "tool box" of resources that are critical to provide them with the quality of service and outcomes they are expecting."
– Royston Knowles, Executive with 50+ Years of Board Level Experience
"If you are looking for great resources to save time with your business presentations, Flevy is truly a value-added resource. Flevy has done all the work for you and we will continue to utilize Flevy as a source to extract up-to-date information and data for our virtual and onsite presentations!"
– Debbi Saffo, President at The NiKhar Group
"My FlevyPro subscription provides me with the most popular frameworks and decks in demand in today’s market. They not only augment my existing consulting and coaching offerings and delivery, but also keep me abreast of the latest trends, inspire new products and service offerings for my practice, and educate me in a fraction of the time and money of other solutions. I strongly recommend FlevyPro to any consultant serious about success."
– Bill Branson, Founder at Strategic Business Architects
"One of the great discoveries that I have made for my business is the Flevy library of training materials.
As a Lean Transformation Expert, I am always making presentations to clients on a variety of topics: Training, Transformation, Total Productive Maintenance, Culture, Coaching, Tools, Leadership Behavior, etc. Flevy usually has just what I need to make my point.
It is well worth the money to purchase these presentations. Sure, I have the knowledge and information to make my point. It is another thing to create a presentation that captures what I want to say. Flevy has saved me countless hours of preparation time that is much better spent with implementation that will actually save money for my clients."
– Ed Kemmerling, Senior Lean Transformation Expert at PMG
SELECT CUSTOMERS
Since 2012, we have provided best practices to over 10,000 businesses and organizations of all sizes across the world—in over 130 countries.
Below is just a very small sample of our customer base.
Did you know?
The average daily rate of a McKinsey consultant is $6,625 (not including expenses). The average price of a Flevy document is $65.
Download our free compilation of 50+ Strategy & Transformation slides and templates. Frameworks include McKinsey 7-S Strategy Model, Balanced Scorecard, Disruptive Innovation, BCG Experience Curve, and many more.
Download our free compilation of 50+ Strategy & Transformation slides and templates. Frameworks include McKinsey 7-S Strategy Model, Balanced Scorecard, Disruptive Innovation, BCG Experience Curve, and many more.